Editor’s Notebook: Independent Dealers Sue Volkswagen, CPO Sales Up 18% in Franchised Dealer Sales

by Jon LeSage, Edi­tor, Used Car Mar­ket Reports

Here are a few inter­est­ing remar­ket­ing news items from this week:

  • Deal­ers are feel­ing the pinch from the Volk­swa­gen recall over false emis­sions report­ing on its diesel cars – with deal­er asso­ci­a­tions and news­pa­pers around the coun­try report­ing VW deal­ers feel­ing caught in the mid­dle. We’re start­ing to see law­suits filed in the U.S. and Cana­da over it. In one of these suits, inde­pen­dent deal­ers sued Volk­swa­gen AG in fed­er­al court over loss­es they say they’ll incur. The pro­posed class action was filed in a Cal­i­for­nia fed­er­al court on behalf of inde­pen­dent car deal­ers in the state and seeks dam­ages like­ly to exceed $1 mil­lion.
  • CPO sales were up dur­ing the first half of the year for fran­chised deal­ers, accord­ing to the lat­est Pulse report from ADESA Ana­lyt­i­cal Ser­vices. CPO made up 18.5% of used sales this year ver­sus 16.9% last year. Cer­ti­fied vehi­cles also made up 9.8% of retail used sales through the first half of this year, com­pared to 8.9% a year ago. Exec­u­tive VP Tom Kon­tos thinks CPO has helped sup­port used vehi­cle val­ues as whole­sale sup­ply has grown.
  • Truck sales con­tin­ue to have a bright future in used vehi­cle val­ues with strong demand and wan­ing sup­ply. In August, two CPO mod­els — GMC Sier­ra 2500 and Ford F-250 — appeared on the nation­al Top 10 list of most shopped cer­ti­fied mod­els with the low­est sup­ply col­lect­ed by Auto­trad­er. “Strong over­all truck sales, and inter­est in hefti­er trucks, are an eco­nom­ic indi­ca­tor sug­gest­ing a healthy con­struc­tion and house-build­ing mar­ket,” says Auto­trad­er senior ana­lyst Michelle Krebs.
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